Allowed

Canara Bank v. M s M a K Exports

DRT9 Nov 2022MA/112/2022

Case brief

AI extract

What is this about?

The Tribunal allowed the applicant bank's motion for condonation of a 1112-day delay in re-presenting an Original Application. The delay was attributed to the loss of the case bundle during the pandemic lockdown due to another counsel's mistake. The court waived costs but reserved the issue of interest for future consideration.

What did the court decide?

Motion for condonation of delay allowed; subject of levying interest for the defaulted period reserved for consideration at the time of drawing the Recovery Certificate.

Canara Bank versus M s M a K Exports — Banking and Recovery | DRT (2022)

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MA 112/22 in OASR 3571/19

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09.11.2022

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IN THE DEBTS RECOVERY TRIBUNAL – III, CHENNAI

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Dated this the 09^th day of November, 2022

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Present: Shri Ganapathi K.R.K. Presiding Officer

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MA No. 112/22 in OASR No.3571/2019

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Canara Bank Kellys Branch Represented by its Chief Manager No.207, Purasaiwalkam High Road, Chennai – 600 007

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.....Petitioner

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Vs.

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M/s. M.A.K Exports Represented by its Proprietor, Mr. A.Akbar Ali, Having business at No.64/2, Wuthu Catton Street, Periamet, Chennai – 600 003.

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Mr. A. Akbar Ali, S/o. late A. Abdul Khader No.9-A/19, Arasamaram Street, Begambur (P.O) Dindugal Town, Dindugal District.

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Mr.A. Jaheer Hussain S/o. late A. Abdul Khader No.9-A/19, Arasamaram Street, Begambur (P.O) Dindugal Town, Dindugal District.

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Mrs. M.Balkees Bivi W/o. late A. Abdul Khader No.9-A/19, Arasamaram Street, Begambur (P.O) Dindugal Town, Dindugal District.

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Mr.A.Akthar Hussain

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MA 112/22 in OASR 3571/19

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09.11.2022

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S/o late A. Abdul Khader No.9-A/19, Arasamaram Street, Begambur (P.O) Dindugal Town, Dindugal District. ….Respondents

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Counsel for Applicant : M/s. K.R.A. Muthukrishnan.

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O R D E R

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This MA is filed by the Petitioner / Applicant Bank for condonation of delay of 1112 days in re-presenting the Original Application after complying with the office objections.

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It is the case of the petitioner / applicant bank that the objections were duly contemplated to be complied upon but however owing to lockdown imposed on account of Pandemic Covid-19, case bundle which was kept in High Court chamber could not be accessed and subsequently, after lifting of lockdown on thorough search, it was found out that case bundle was mistakenly taken away by another counsel who was sharing the chamber with bank’s counsel. Therefore it is their case that they could not represent the OA within time granted by this Tribunal and prays to condone the delay.

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On perusal of records, it is seen that this is an OA filed for recovery of sum of Rs.1,47,11,433/- together with future interest at the rate of 15.50% p.a. compounded with monthly rests from defendants. It is not explained anywhere in the petition as to how applicant bank will be entitled to claim interest at the contractual rate for the period of delay, which is owing to their inaction and not attributable to any action of the defendant. As the period of delay is on the very high side, condonation of the same by

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MA 112/22 in OASR 3571/19

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09.11.2022

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levying formal amount in the form of costs payable either to the Library Fund or to any Charity organization as a measure of reprimand would not be justifiable when compared with the levy of interest burden on the defendants for the period of default on the part of the applicant bank for no fault of the borrower.

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However, in the circumstances, this MA is allowed on the condition that the subject of levy of interest for the defaulted period (1112 days) which is condoned at this stage of the OA proceedings shall stand for consideration at the time of issuance of Recovery Certificate by the progress of the case and the conduct of the case on behalf of the applicant bank till the stage of issuance of the recovery certificate. Registry is directed to put up a note accordingly for consideration of claim of interest for this default period at the time of drawing of the Recovery Certificate in case for an order thereto by the Tribunal.

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Registry is directed to number the OA, if otherwise found to be in order.

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(Dictated to PS, transcribed by her, corrected, corrected, signed and processed through E-drt on this the 09^th day of November, 2022)

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Sd/-

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(GANAPATHI K.R.K) PRESIDING OFFICER

Canara Bank v. M s M a K Exports

Case brief

What is this about?

What did the court decide?

Canara Bank v. M s M a K Exports

Case brief

What is this about?

What did the court decide?

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